On April 28, 2023, the Tax Department of Bac Ninh province issued Official Letter No.1435/CTBNI-TTHT, according to which:
About the expert’s personal income tax: PIT taxable income of foreign experts sent by foreign companies to work in Vietnam is the entire income that foreign experts receive during their working time in Vietnam, including meals, accommodation, travel… paid by the company in Vietnam (if any) and income from salaries and wages received by the foreign expert by the foreign company in proportion to the time of performing the work for the Company in Vietnam.
Experts shall declare and pay PIT for income generated in Vietnam according to the guidance in Article 18 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance. The Company is responsible for notifying the foreign contractor of the personal income tax obligation of the experts and for notifying the tax authority to manage the list of foreigners working at the Company in accordance with the provisions of Clause 1 of this Article. Article 27 Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance mentioned above.
About foreign contractor tax: In case an overseas company (foreign contractor) has income generated in Vietnam based on a contract, agreement, or commitment between a foreign contractor and a Vietnamese company to provide technical training consulting support service for the Company, foreign contractors are subject to the application of contractor tax as prescribed (including VAT and CIT).
